1
Exhibit 99.2
BUSINESS INFORMATION
Return on
Earnings Revenue Assigned Capital Average Assets*
Nine months ended September 30- ------------------- ------------------ ------------------ --------------------
Dollars in millions 1999 1998 1999 1998 1999 1998 1999 1998
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PNC Regional Bank $490 $451 $1,734 $1,746 22% 21% $39,485 $38,741
Asset Management
PNC Advisors 111 87 551 348 27 31 3,299 2,646
BlackRock 42 23 280 210 44 38 443 302
PFPC Worldwide 34 29 170 141 42 43 257 229
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Total asset management 187 139 1,001 699 32 34 3,999 3,177
Wholesale
PNC Institutional Bank 84 58 313 280 17 13 9,660 8,459
PNC Secured Finance 79 52 224 147 19 15 8,038 6,766
PNC Mortgage 45 23 327 243 13 10 7,092 4,634
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Total wholesale 208 133 864 670 16 13 24,790 19,859
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Total businesses 885 723 3,599 3,115 22 20 68,274 61,777
Other 10 107 106 423 6,974 11,922
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Total consolidated - core 895 830 3,705 3,538 21 21 75,248 73,699
Gain on sale of credit card business 125 193
Gain on sale of equity interest in
Electronic Payment Services 63 97
Gain on sale of Concord EFS stock
net of PNC Bank Foundation
contribution 16 41
Valuation adjustments (92) (142)
Costs related to efficiency
initiatives (64)
Gain on sale of branches 17 27
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Total consolidated - reported $960 $830 $3,921 $3,538 23 21 $75,248 $73,699
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* BlackRock's assets are presented as of period end.
PNC REGIONAL BANK - PNC Regional Bank provides credit, deposit, branch-based
brokerage and electronic banking products and services to retail customers as
well as credit, leasing, treasury management and capital markets products and
services to mid-sized and small businesses primarily within PNC Bank's
geographic footprint. PNC Regional Bank contributed 55% of total business
earnings in the first nine months of 1999 compared with 63% in the first nine
months of 1998. Earnings increased 9% in the comparison driven by improved
efficiency and growth in deposits. Excluding the impact of branch gains and
costs related to consumer delivery initiatives in 1998, earnings increased 16%.
PNC ADVISORS - PNC Advisors offers personalized investment management, high-end
brokerage, personal trust, estate planning and traditional banking services to
affluent and wealthy individuals; and investment management, trust and
administrative services to pensions, 401(k) plans and charitable organizations.
PNC Advisors contributed 13% of total business earnings in the first nine months
of 1999 comprised with 12% in the first nine months of 1998. Earnings increased
28% in the comparison due to strong revenue growth attributable to new business.
BLACKROCK - BlackRock offers fixed income, domestic and international equity and
liquidity investment products, and utilizes technology-based risk management
capabilities to provide investment advisory and asset management capabilities
for a wide range of institutional and retail customers. BlackRock contributed 5%
of total business earnings in the first nine months of 1999 compared with 3% a
year ago. Earnings nearly doubled in the comparison as a result of new business.
PFPC WORLDWIDE - PFPC Worldwide provides a wide range of accounting,
administration, transfer agency, custody, securities lending and integrated
banking transaction services to mutual funds, pension and money fund managers,
partnerships, brokerage firms, insurance companies and banks. PFPC Worldwide
contributed 4% of total business earnings in the first nine months of 1999 and
1998. Earnings increased 17% in the comparison as a result of an increase in
assets serviced.
PNC INSTITUTIONAL BANK - PNC Institutional Bank provides specialized credit,
capital markets and treasury management products and services to corporations,
institutions and government entities nationwide. PNC Institutional Bank
contributed 9% of total business earnings in the first nine months of 1999
compared with 8% in the prior-year period. Earnings increased 45% in the
comparison due to higher revenue and a lower provision for credit losses.
PNC SECURED FINANCE - PNC Secured Finance is engaged in commercial real estate
finance, including loan origination, securitization and servicing; asset-based
financing, including lending, syndication and treasury management services; and
equipment lease financing to corporate clients nationwide. PNC Secured
Finance contributed 9% of total business earnings in the first nine months of
1999 compared with 7% a year ago. Earnings increased 52% in the comparison
driven by revenue attributable to Midland Loan Services, L.P.
PNC MORTGAGE - PNC Mortgage originates, purchases and services residential
mortgages and related products. PNC Mortgage also acquires and securitizes
residential mortgages as private-label mortgage-backed securities and performs
the master servicing of those securities for investors. PNC Mortgage contributed
5% of total business earnings in the first nine months of 1999 compared with 3%
in the prior-year period. Earnings nearly doubled in the comparison driven by
revenue growth primarily attributable to a larger servicing portfolio.
OTHER - Other reflects differences between total business results and
consolidated core financial results primarily due to differences between
management accounting practices and generally accepted accounting principles,
divested and exited businesses, venture capital activities, sales of equity
interests and minority interests in subsidiaries, eliminations and unassigned
items.